https://www.taxtmi.com/caselaws?id=39608 Penalty for failure to pay advance tax under section 273(b) is attracted only where the default occurs without reasonable cause. On the facts noted, the assessee did not pay advance tax because it bona fide believed its income was exempt from tax, and the Tribunal treated that belief as sufficient cause for the non-payment. As that finding was one of fact and was not shown to be open to challenge, the cancellation of the penalty was justified. The principle stated is that a bona fide and reasonable belief about tax exemption can prevent sustainment of penalty for advance-tax default. en-us Thu, 25 Jan 1973 00:00:00 +0530 Mon, 19 Apr 2010 11:22:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39608 Penalty for failure to pay advance tax under section 273(b) is attracted only where the default occurs without reasonable cause. On the facts noted, the assessee did not pay advance tax because it bona fide believed its income was exempt from tax, and the Tribunal treated that belief as sufficient cause for the non-payment. As that finding was one of fact and was not shown to be open to challenge, the cancellation of the penalty was justified. The principle stated is that a bona fide and reasonable belief about tax exemption can prevent sustainment of penalty for advance-tax default. Case-Laws Income Tax Thu, 25 Jan 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39608